Performance Evaluation of Islamic Banks in Bangladesh - A Statistical Analysis

Abstract

Bangladesh has experienced phenomenal growth in Islamic banking following strong public demand of Bangladeshis for the system. Since its establishment in 1983, Islamic banking industry has recorded vigorous performance and the industry now accounted for more than 20 percent market share of the entire banking industry in Bangladesh. According to a statement of BIBM, Bangladesh ranked 10th in the world in terms of Islamic banking. The principal objective of the study is to critically evaluate the performance of Islamic Banks in Bangladesh through growth, productivity and profitability. The study is the outcome of mainly secondary sources of data. The main findings of the study are i) It is seen that the growth trend of deposits, investment and branches of all sample banks increased during the study period .ii) It is seen that the productivity performance in terms of working fund to total expenses and total income to total expenses have been satisfactory in most of the banks during study period. iii) It is also observed that the profitability performance in terms of total income and working fund have been satisfactory of all the sample banks during the study period.

Key Words: Islamic Banks, Growth, Productivity , Profitability.